Amidst robust economic growth and stock market conditions, India Inc. is reaching new heights and drawing a multitude of US and European venture capitalists and private-equity funds. They are eyeing a share of country's phenomenal growth benefits. It's a boom time for Private Equity (PE) players. Unlike in the past, PE investment is no longer confined to technology industry but is being witnessed across all the sectorsfrom media to retail to outsourcing. Around 30 domestic and international funds are targeted at the subcontinent for deals worth $4 bn in investments. Brands like Blackstone, Carlyle, Warburg Pincus, Barings, Citigroup, ChrysCapital, Farallon, General Atlantic, Clearstone Ventures and 3i, etc. all these are on a lookout for a sizeable minority stake in both listed and unlisted entities in the country. As estimated by Venture Intelligence, a private equity research firm, there was a five-fold increase in investment by PE firms across 76 deals worth $2.1 bn during the quarter ended June 2006.
It's
not only the sizzling economic conditions that is attracting PE investors but
many of the Indian medium-to-large family-owned companies are also in need of
foreign capital and management know-how. On the other hand, many Indian companies
are globally recognized and some of them have established a name for themselves
in the global market. These companies span across a number of sectors covering
information technology, pharma, outsourcing, oil and commercial aviation. Real
estate is another area where PE players are showing a lot of interest these days.
Analysts opine, "One reason investors continue to invest in India is that
it offers a good way to cash out with a profit. It is a comparatively liquid and
transparent stock market. |
